Question

Which one of the following actions represents a source of cash?

1) Selling inventory
2) Paying off a loan
3) Purchasing equipment
4) Hiring new employees

Answer 1

Selling inventory is a source of cash for a company.

Step-by-step explanation:

The action that represents a source of cash is Selling inventory. When a company sells its inventory, it receives cash in exchange for the goods or services it has sold. This cash can then be used for other purposes within the business, such as purchasing new equipment or hiring new employees.